Every time you eliminate waste in the day-to-day process to manufacture your product, it increases your profit. It is that simple! The 7 wastes of Lean, listed below, are the main culprits.
Transport: Moving products or materials from one location to another adds cost, doesn’t add value, and wastes time.
Inventory: Unnecessary inventory of raw materials that collects before or after a process. Takes up space, unnecessary expenditure.
Waiting: This is idle time that wastes money waiting for materials or information, or further instruction.
Overproduction: This is making more product than needed, assuming that the customers will need it. Anything made beyond what is needed is a waste of resources, time and space.
Motion or Movement: This is in regards to excess movement or motion because of poorly designed workspace in the organization.
Defects: The causes can range from poor quality control to failure to communicate and everything in between.
Extra Processing: This is anything extra that you include after the product has met specifications, such as extra wrapping/boxes, just about anything that is not needed.